Government's electric car grants

Motorists buying electric, plug-in hybrid or hydrogen fuel cell vehicles from January 2011 will be able to claim a ‘Plug-In Car Grant’ of up to £5000 as part of a £230 million government scheme.

The government’s Office for Low Emissions Vehicles (OLEV) also announced 11,000 electric charging posts in London, Milton Keynes and North East England would be installed as part of its £30m Plugged-In Places scheme.

From June 2010, other cities and areas including Sheffield, Manchester and Cornwall, will be bidding for funds from the Plugged-In Places scheme.

The SMMT’s chief executive Paul Everitt welcomed the funding, saying it was important for creating new jobs in the UK and making the country a world-leader in low-carbon vehicles.

“Manufacturers develop and produce new technology where demand exists,” he said. “This incentive will help encourage international investment in the UK as well as reducing motorists’ CO2 emissions.”

Both schemes were initially announced as part of 2009’s budget, although this is the first time exact details have been revealed. Under the Plug-In Car Grant, motorists will be able to claim 25 per cent off the list price of a qualifying car, up to the value of £5000.

Our Verdict

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What a sensible proposition after the scrappage scheme. Rather than classic and timeless cars getting taken to scrap yards you actually get a grant to help reduce your carbon footprint rather than buying any car. Government money will help bring innovation to the country rather than sending money to Korea for their small cars.

This should have been incorporated into the scrappage scheme, £1000 off for a "normal car" and upto £5000 for a hybrid/electric car.